prepare cash budget for month of April to July.

Wages to be paid to workers sh. 5,000 each month. Balance at the bank on 1st Apr. sh 8,000 . It has been decided by the Management that: (i) In case of deficit fund within the limit of sh10,000 arrangements can be made with bank. (ii) In case of deficit fund exceeding sh.10,000 but within the limits of sh. 42,000 issue of debentures is to be preferred. (iii) In case of deficit fund exceeding sh.42,000, issue of shares is preferred